Enterprise Consolidation Leads 2018 Digital Banking Trends

November 29, 2017         By: Payment Week

OMAHA, Neb., Nov. 29, 2017D3 Banking Technology, provider of the industry’s most advanced digital banking platform, expects digital banking as a platform to be adopted by an increasing number of financial institutions in 2018. Those who have already established a streamlined digital strategy will extend its reach into additional channels, like small business and commercial banking.

Mark Vipond, CEO of D3, commented, “Banks and credit unions who want to elevate and strengthen their brand are significantly changing how they approach digital. They understand that digital is not just another area of operations, but is rather becoming banking’s heartbeat. Innovative institutions like Arvest Bank, First Tennessee Bank and TCF Bank are leveraging this philosophy to speed innovation and prioritize quickly bringing new features to market.  In 2018, more institutions will follow suit, pushing digital transformation into more areas of their bank or credit unions.”

D3 expects to see several other related developments to emerge in the new year, including:


  • Continuous rapid introduction of new features. The days when banks or credit unions could release a package of new features and functionality only once or twice a year are long gone. Now, when technology advances and new ways to bank are introduced, customers and members expect those services to be available to them in a matter of weeks, not years. In 2018, API-based architectures that can meet these expectations will become widespread, making dated legacy solutions even less viable.


  • Customer-driven payments. D3 continues to believe that the payments experience should belong to financial institutions. Recent developments by NACHA in the area of APIs and new bank-owned payment networks demonstrate how the industry is investing to protect that turf. However, banks and credit unions must continue to respond at an increasing pace when consumers demonstrate a clear preference for new payment apps, methods and networks. By failing to do so, they risk being excluded from their customers’ payment experiences, losing loyalty and valuable customer data.


  • Recruiting younger talent and customers. In 2018, Millennials (Gen Y) are expected to have the most disposable income of any generation. As experienced bankers are retiring more quickly than younger bankers are entering the industry, there will be increased concern around succession planning and remaining relevant. To recruit both potential customers and employees, financial institutions will leverage targeted communication strategies and one-to-one marketing campaigns that resonate with younger generations, including Gen Y and Z.


  • The rise of regional institutions. In 2017, a few of the more forward-thinking regional institutions leveraged their unique combination of community connection and larger footprint to deliver a superior customer experience, allowing them to compete with national banking providers. Recent scandals at large banks have damaged their brands, well-positioning these regionals to step into the spotlight. This rise of regionals will gain even more momentum in 2018 and beyond.


Vipond continued, “In 2018, AI and other new technologies will continue to dramatically change the ways consumers interact with the world around them, including how they bank. Banks and credit unions must be able to quickly offer a wide variety of digitally-optimized options, for everything from payments to account opening to customized analytics, to ensure they continue to play a central role in their customers’ and members’ lives.”

About D3 Banking Technology
D3 Banking Technology’s consumer and small business digital solutions enable financial institutions to quickly introduce scalable innovations that give them a competitive advantage in the marketplace. D3’s technology leverages an open API-driven platform built on a modern technology stack that is extensible, scalable and configurable. This platform powers a consistent, intuitive user experience, while also reducing cost, lowering complexity and enabling financial institutions to know their customers and anticipate needs better than ever before. Learn more at www.d3banking.com.